General Motors Chief Executive Officer Daniel Akerson will be in Washington this Thursday, March 21st, to help settle political tension surrounding GM’s 2009 bailout worth $49.5 billion, which became the topic of the 2012 presidential election last fall.
GM was targeted in Mitt Romney’s campaign ads during the run-up to the election, attacking the automaker for receiving bailout funds and supposedly cutting jobs in America while boosting production in China.
“Under President Obama, GM cut 15,000 American jobs, but they are planning to double the number of cars built in China, which means 15,000 more jobs for China,” the ad said. “And now comes word that Chrysler is starting to build cars in, you guessed it, China. Mitt Romney — he’ll stand up for the auto industry. In Ohio, not China.”
General Motors issued a response to the ad, saying: “We’ve clearly entered some parallel universe during these last few days. No amount of campaign politics at its cynical worst will diminish our record of creating jobs in the U.S. and repatriating profits back to this country.”
This will be Akerson’s first visit to Capitol Hill in over a year. During his visit, the chief executive — who was not involved in the pre-bailout GM — will look to put political unrest behind the automaker while showing Congress that the company has made significant strides toward financial stability. To assist him in accomplishing this goal, Mr. Akerson will bring along the new 2014 Chevrolet C7 Corvette Stingray for “its first appearance in Washington D.C.”
As for GM’s financial health, the automaker earned $23 billion in profits and reduced its U.S. pension obligations by $28 billion since emerging from bankruptcy in the summer of 2009. In addition, GM has invested $8.1 billion in U.S. manufacturing plants and has created or retained 23,000 jobs since the bailout, the most recent of which is the new Information Technology initiative that aims to hire 4,000 new employees across the United States.
The GM Authority Take
We wish Mr. Akerson the best of luck in Capitol Hill. As for Mr. Romney’s efforts to smear GM, we recommend he revisit the requirements of selling cars in China, and the repercussions of not competing in the country thanks to some politico-national agenda.
Comments
I don’t know if it’s a good idea to take the new 2014 Corvette to Washington with him. If he does, he should also bring a couple of other vehicles to manage the impression that GM is still not making cars that are fuel-efficient and for the broader population. For example, the Volt now outsells the Vette and sales are growing. So bringing one of those along might be ‘politically’ wise. The Vette is a good example of GM innovation, design, and engineering. It gets extraordinary fuel mileage in it’s own right. How about bringing along a new pick-up and the Cruze, a Trax, or an even smaller example of a car within their stable of offerings. Maybe a 4 cylinder Turbo Buick? I just worry that if he brings along the new Vette he’ll leave them with the impression that GM only makes high-performance cars with massive V8s.
CVT, almost exactly the comment I was going to post. This just shows an out-of-touch CEO. The American masses bail out a company with their tax dollars so that company can produce a niche sports car that only a few can afford?
Dan’s problem here is that he doesn’t have any mainstream, inexpensive cars that offer serious performance gains. If he were the head of Ford he could be going to Washington in a sub-30K$ hybrid.
CVT, in your list of vehicles I would not include the Trax. That is neither made here nor offered here — a mistake, in my opinion. I do like your pen-name though. Now where is that CVT in a mainstream small-car? This is the area where GM seems to be showing no interest or is far behind, and it’s a big one in terms of fuel economy potential.
With regard to the last comment, what’s it to do with government/s what GM or any other firm makes? Are GM in business to make money & sell what people want or to please politics?
Haters will always hate and no matter what GM does they will hate.
They completely ignore all other facts to make their one sided comments. When supplied facts they ignore them.
There are excellent GM vehicles that outsell the competition like the Sonic and Spark.
62Vette, I’ll go out on a limb and assume that you are referring to me with your use of the word “hater,” and that you think I ignore “facts.” FYI, I am an engineer with expertise in causal analysis and statistics. I see people draw erroneous conclusions from data all of the time. I won’t be able to convince you that past sales is not an indication of a product’s viability in the future. So I won’t. There is neither time nor space here.
I will share with you this article on the bankruptcy. Though it probably wasn’t the largest factor, blind arrogance in the face of inadequate product offerings and quality played a major role:
http://www.nydailynews.com/news/money/general-motors-fail-article-1.374800
I have purchased (new) three times as many GM vehicles as all others combined. That isn’t the history of a GM “hater.” I wanted that to continue, because I believe it is important for the country’s well-being. But I’ve become more literate about cars while at the same time the domestic offerings have become much more limited. GM is offering almost nothing in the C-class for the U.S. beyond the dated Cruze, yet the C-class is the world’s largest segment. The U.S. will become more like the rest of the world as middle class incomes decline, and as fuel becomes more scarce. Think about that.
These Volt fans that keep bashing the rest of the excellent range of GM cars (& also incidentally the ones that make GM a profit) are picking off models they don’t desire & questioning their existence rather arrogantly yet anyone seen to be knocking their beloved Volt is seen as of low intelligence & is not allowed to beg to differ.
He is the man in charge & He chose the Corvette
@VeranoHatch…I live in Canada and we get the Trax here. My pen-name is derived from one of my car ownership documents; not to be confused with the CVT transmission. In the Ministry of Transportation database here in Canada every vehicle has a 3-digit identifier. CVT represents “Corvette” and I have a 1998 Artic White convertible that just turned 33,000 km on the odometer. I also have a 2009 CTS-V and it is identified as ‘CTV’ on the ownership. Just a bit of Canadian ‘ownership’ documentation trivia for ‘ya. I remember when the CEOs of Chrysler and GM went to Washington for their hearing and to ask for Government bailout money back in 2009. They were each asked how they travelled to Washington, and I believe they both indicated that they flew by private Corporate jets. This was really frowned upon and it ‘smacked’ of arrogance and exclusivity. If they car-pooled in a mini-van or a Volt it would have certainly improve the optics. Like it or not, the guys lending the money expect a certain amount of humility for the loan. Fast-forward to 2013 and I believe that showing up with a Corvette will hurt the optics of the visit. The visit (as I interpret it) is to set the record straight on domestic jobs and to manage the perception (that Mitt Romney established) that GM took the bailout money and created jobs in China at the expense of jobs in Detroit, the State of Ohio…wherever. I don’t think it’s necessarily a good idean to confuse the Washington audience with the purpose of the trip. Showcasing the new Corvette is a great example of GM design, development, and engineering. Keep it at the Auto Show roadshows would be my suggestion.
I have no doubt politicians would prefer more Eco friendly cars (most company’s are doing their bit) however GM needs profitable cars & the new Corvette has just been launched, hence showing the progress made – if he went in a Volt (not sure but it must be two or three years old) what progress is that turning up in a older model?
I re-read the article and the purpose of the trip is to show “Congress that the company has made significant strides toward financial stability”. I have a financial career background and I would go to Congress with examples of: 1) debt management, 2) re-investment, 3) growth in market share, 4) emerging markets, 5) competitiveness, 6) investments in research & development, 7) domestic and off-shore employment growth, 7) employee engagement…..and lastly 8) innovation. Bringing props to a formal presentation always helps (doesn’t hurt), so coming along with a new generation of engine with cylinder de-activation, or an actual example of a vehicle that reflects these things isn’t a bad idea. But I wouldn’t bring an example from the GM Performance Division (ZL1 Camaro or new Stingray), given the audience. Just my $0.02.
You say the Corvette sells to the few, but the Volt is a niche product too, it itself only appealing to the few. Also GM needs to show their range is a wide range covering many tastes (to which it is) and not just a Volt.
It also doesn’t want to become predicable in these show off occasions like each time bringing out the Volt to the point that everyone knows GM’s hand.
@ V8 Jon…good point. If Dan Akerson is intent on taking a vehicle to showcase to Congress, perhaps a car or truck with more mass appeal would be better. How about the new Silverado pick-up? I understand from a recent article that GM full-size light-duty trucks are now outselling the Ford F150s. Or how about the Cadillac ATS that was given MotorTrend’s Car of the Year Award? I think it would be wise to talk to Congress about product diversity, growth in market share, emerging markets, or industry recognition. Maybe the 2014 Corvette Singray is a good example of industry recognition, product longevity, product renewal…that sort of thing. The Volt technology has also recently been adapted to the Cadillac lineup. Maybe just talking about how GM is leveraging it’s investment in ‘electric vehicle technology’ will be enough illustrate the Return on Investment; from the Government loan.
GM has showcased their vehicles to the DC crowd many times in the last couple years. I just do not think the folks like GMA know about it? They have seen the Volt and Sonic and ATS and everything else.
This is just the latest visit. What they have not seen are the new trucks and vettes.
Yes there are many desirable cars, muscle cars & trucks all with various engines (4,6,8 cylinders) too show off they may of been tempted by a ELR although GM wouldn’t want to be seen as a one trick pony by just showcasing Volt/ELR.
Who cares what they take to D.C., the liberals and politicos will always bitch about it. Fact is G.M. has made great strides towards getting things back in proper order. The missed point is that China is involved because it is more profitable for G.M. there than here. Reasons being All of our stifling regulations, the wage and labor union issues, and the fact that Washington always thinks it has to have it’s hands in the middle of everything. Thus part of the terrible nick-name Government motors. Too bad G. M. can’t tell them all to go to Hell and get back to the business of designing and producing some of the worlds best and most beautiful vehicles. It seems that anybody has to be global in these times anyway. Not necessarily a bad thing. Me: First and always a G.M. fan thank you!
Do people just make things up?
2012 full year financials- EBIT profits
North America……………………………………………………………..$7 billion
GMEurope……………………………………………………………….. -$1.8 billion
GMSouth America………………………………………………………….$.3 billion
GMInternational (China is just one country out of over 100) $2.2 billion
http://www.gm.com/content/gmcom/home/company/investors/earning-releases.content_pages_news_emergency_news_021413-q4-earnings.~content~gmcom~home~company~investors~earning-releases.html
Sorry about the way it came out. I will repost with better spacing. And why do I get a thumbs down for just printing data?
2012 full year financials- EBIT profits
North America………………………………………..$7 billion
GMEurope………………………………………….. -$1.8 billion
GMSouth America…………………….……………….$.3 billion
GMInternational ………………………………………….. $2.2 billion
(China is just one country out of over 100)
http://www.gm.com/content/gmcom/home/company/investors/earning-releases.content_pages_news_emergency_news_021413-q4-earnings.~content~gmcom~home~company~investors~earning-releases.html
Leave it to Mitt the Twit to make a rediculous comment like that… Good ridence to Mitt and the Republican Party… Let real conservatives and moderates run the country not these fat rich pigs…
Lets not let our political affiliations get into this GM website please!!!!!!!!!!!!!!!
@ 62vetteefp to late for that statement due to Paul’s Misguided Point that Liberals are the ones who are bitchin, don’t know when Paul Fell to Earth but it’s been the Conservatives(Mitt Romney, Damn sure Ain’t a Liberal) from Day 1 wanting a Company like GM and Chrysler to Fail so Hundreds of Thousands could be Jobless and Pinning these Nasty Disgraceful Labels. Be nice if they Felt the Same way about the Big Banks that Continue to Screw us up the Butt(With No Grease) to prevent us from getting Homes and these Amazing Vehicles that GM is producing now!!! Though your point is Well taken about the Politics, that Should have been Addressed when Paul(Tho I Loved your Rebuttal to him) brought it up, but, I’m in the Camp that if a Ungrateful & Disrespectful Bailed Out bank CEO can tell the American People about their Finances and how Stupid we are because we Miss-Manage them, Why can’t a Bailed Out Auto CEO who not only is Making a Profit, Bringing Real Innovation and Hiring People by the Thousands, bring what he wants to the Hill!!!
Jesus, discussing the news is one thing, but for everyone’s longterm enjoyment here: let’s keep the liberal/conservative bullshit to a minimum.
The car’s image he’ll likely inflict the least amount of damage to = Corvette.
Thank you Tony…
I like taking the corvette. he’s rising above the politics. show the people what this company is about — outstanding products — and leave the rest to the pundits.
To all those who disagree with how I feel or think: I don’t care. The point I was trying to make is I am sticking up for G.M. I think that the mainstream public and media do far too much G.M. bashing. As far as my personal views I tend to be a more conservative type of person, thank you.
Regardless of politics & who people vote for or don’t politics & choice of car are two separate issues & are not the same. I will buy what I want & I will vote for who I want & that is nobody else’s business politician or not.
Where you from? Antarctica?
Here in the US the Politicians fight about what kinds of vehicles we build. The left wants small, high mileage vehicles and minimize gas usage and the right wants to leave it to the buying public.
Dan should have been to Washington a long time ago and stopped one side from using GM as fodder for an election and the other for acting like it did it all on their own.
The fact is both sides have used GM as Political fodder. Bush gave the first money and had the courthouse leave the rest to Obama since they were going to have to deal with it. So in effect both sides had their hand in the bail out.
As for the Vette I think it sends the wrong signal and opens the door for more bashing by who ever it would benefit. He should look to take a new Impala or Cruze Diesel to show what improvements they have made to cars the regular people buy.
Dan needs to remember this is not a Motortrend road test and a trip to help rebuild GM’s image in the eyes of those who only believe what they hear on TV.
The sooner GM gets out of the government bail out the better. It had to be done and both side know it but who ever won what election was who took what side and GM just became the ball that got beat back and fourth.
Too bad someone did not get distracted and take Chrysler to task for not even being an American owned company or that Ford also has benefitted by a lot of government money too.
The only one to defend GM much was Bob Lutz. It was a shame it took a retired GM conservative to defend GM from conservatives. It tells me someone was asleep at the wheel in the Ren Center.
Do they still have a corp. jet, and if yes, will they be arriving on it? Don’t think they’re driving all the way to Washington.
No corporate jets.
I don’t live in America & didn’t realise the politics involved. I’m in the camp build what’s in demand & make a big profit doing so. (Small cars = small or no profit, hence why PSA have become partners with GM)
GM will be showing vehicles other than the Vette on this trip.
So will you take back our words of derision?
You know the out of touch CEO type of comments?